Griffin-American Healthcare REIT III Reports Second Quarter 2018 Results
IRVINE, Calif. (Aug. 16, 2018) – Griffin-American Healthcare REIT III, Inc. Inc. today announced operating results for the company’s second quarter ended June 30, 2018.
“Griffin-American Healthcare REIT III continued to perform well during the second quarter, with high occupancy throughout our portfolio, impressive weighted average remaining lease term of 8.6 years and moderate leverage1 of just 39 percent,” said Jeff Hanson, chairman and chief executive officer. “Our $3 billion2 international portfolio of 210 healthcare properties and real estate-related investments is mature and its strong performance underscores the expertise and professionalism of our acquisition and asset management teams.”
Second Quarter 2018 Highlights
- As of June 30, 2018, the company’s non-RIDEA3 property portfolio achieved a leased percentage of 92.4 percent and weighted average remaining lease term of 8.6 years, while the company’s portfolio of senior housing – RIDEA facilities and integrated senior health campuses achieved a leased percentage of 84.9 percent and 84.5 percent, respectively. Portfolio leverage1 was approximately 39 percent.
- Modified funds from operations, as defined by the Institute for Portfolio Alternatives, or the IPA, attributable to controlling interest, or MFFO, equaled $23.9 million for the quarter ended June 30, 2018, representing a year-over-year decline of approximately 4.1 percent compared to $24.9 million during the second quarter 2017. The variance in MFFO is largely due to a write-off of unamortized loan fees related to a line of credit modification at the company’s Trilogy Healthcare Services affiliate in the second quarter of 2018. (Please see financial reconciliation tables and notes at the end of this release for more information regarding MFFO.)
- Funds from operations, as defined by the National Association of Real Estate Investment Trusts, or NAREIT, attributable to controlling interest, or FFO, equaled $21.9 million during the second quarter 2018, as compared to $26.7 million during the second quarter 2017, representing a year-over-year decline of approximately 18.1 percent. The quarterly year-over-year decline in FFO is largely due to fluctuations in foreign currency exchange rates, which may not be reflective of ongoing operations. (Please see financial reconciliation tables and notes at the end of this release for more information regarding FFO.)
- Net income during the second quarter 2018 was $682,000, compared to net income of $1.5 million during the second quarter 2017, a decline of approximately 55.2 percent.
- Net operating income, or NOI, totaled $53.2 million for the quarter ended June 30, 2018, an increase of approximately 1.6 percent over second quarter 2017 NOI of $52.4 million. (Please see financial reconciliation tables and notes at the end of this release for more information regarding NOI and net income.)
- The company declared and paid daily distributions equal to an annualized rate of $0.60 per share to stockholders of record from April 1 to June 30, 2018.
1 Total debt divided by total market value of real estate and real estate-related investments. Total market value equals the aggregate contract purchase price paid for investments or, for investments appraised subsequent to the date of purchase, the aggregate value reported in the most recent independent appraisals of such investments.
2 Based on aggregate contract purchase price of owned and/or operated real estate and real estate-related investments, including development projects, as of June 30, 2018.
3 The operation of healthcare-related facilities utilizing the structure permitted by the REIT Investment Diversification and Empowerment Act of 2007 is commonly referred to as a “RIDEA” structure.